FY2027 March: Q1 sales were on plan, but first-half profit progress remains to be verified

Consolidated sales for the first quarter of FY2027 were ¥11,861 million, up 10.8% year on year. Operating profit was ¥293 million, ordinary profit was ¥308 million and profit attributable to owners of the parent was ¥128 million, with all three turning profitable from the previous year's operating loss of ¥53 million, ordinary loss of ¥28 million and net loss of ¥85 million. The full-year forecasts are ¥47,740 million in sales, ¥1,350 million in operating profit, ¥1,420 million in ordinary profit and ¥923 million in net profit.

First-quarter progress against the full-year forecasts was 24.8% for sales, 21.7% for operating profit, 21.7% for ordinary profit and 13.9% for net profit. Sales were almost at the simple 25% quarterly benchmark, but profit lagged sales. The first-quarter operating margin was approximately 2.5%, below the 2.9% recorded for FY2026 as a whole, so it is not yet clear whether higher sales will translate directly into upside to full-year profit.

In its first-quarter earnings presentation, the company described the full-year outlook as broadly on plan, but it did not disclose numerical progress against the full-year forecasts or profit plans for the first and second halves. It also did not disclose order intake or order backlog. Accordingly, in first-half FY2027, it will be necessary to assess not only sales growth but also how contract prices, personnel costs, recruitment expenses and factory fixed costs have affected operating profit of ¥293 million.

Using a simple 50% progress benchmark, the first-half reference levels are ¥23,870 million in sales, ¥675 million in operating profit, ¥710 million in ordinary profit and ¥461 million in net profit. These are not first-half targets explicitly set by the company, but comparison benchmarks obtained by mechanically dividing the full-year forecasts in half. The company did not prepare a cash flow statement for Q1 and did not disclose operating cash flow or cash at period-end, so the first-half results should also be reviewed for any expanded disclosure on liquidity, capital expenditure and changes in borrowings, alongside profit progress.